Which of the Following Statements Is True

question 50

Multiple Choice

Which of the following statements is true?

• A)A per tonne royalty may increase the level of mineral output and result in government revenues which are too low when prices are low.
• B)A per tonne royalty may reduce the level of mineral output and result in government revenues which are too high when prices are high.
• C)A per tonne royalty may reduce the level of mineral output and result in government revenues which are too low when prices are low.
• D)A per tonne royalty may reduce the level of mineral output and force some firms to exit the industry.

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Definitions:

Disbursement Float

The time delay between when a check is written and the funds are actually deducted from the payer's account.

Collections Float

The time gap between when a check is deposited in a bank and when the funds become available, affecting the cash flow of the business.

Credit Department

The division within a company or financial institution that is responsible for managing customer credit and collecting payments.

DSO

Days Sales Outstanding (DSO) is a measure of the average number of days that it takes a company to collect payment after a sale has been made.